Borderline IR35

[ChrisW]

hi,

I've just started a new contract which is essentially to do a migration. It is a fixed 1 year contract. My accountant' s legal team say my contract is borderline and there are no guarantees anyway. Do HMRC take into account contract length when they do an IR35 assessment? It is obvious that I am not like a regular employee as I'm there for a specific project without a rolling contract. Also, if they deem me to be inside IR35, is there any point in trying to argue my way out of it? Or does that way lie a legal bill larger than the tax I would be saving?

I personally think it would be unfair to subject me to IR35 for this particular assignment (but then I would, wouldn't I) but life ain't always fair, is it? And how likely is an IR35 assessment?

Thanks in advance,
Chris

[Sockpuppet]

hi,

I've just started a new contract which is essentially to do a migration. It is a fixed 1 year contract. My accountant' s legal team say my contract is borderline and there are no guarantees anyway. Do HMRC take into account contract length when they do an IR35 assessment?

No. Ovbiously if you are at the same place full time for 20 years then it looks bad but its about the contract not the time. Dont trust you accountants I'd hazard a guess they are not IR35 ... http://www.bauerandcottrell.co.uk/services.asp ... get the specialsts to look at it.

It is obvious that I am not like a regular employee as I'm there for a specific project without a rolling contract. Also, if they deem me to be inside IR35, is there any point in trying to argue my way out of it? Or does that way lie a legal bill larger than the tax I would be saving?

Search for "PCG Plus"

I personally think it would be unfair to subject me to IR35 for this particular assignment (but then I would, wouldn't I) but life ain't always fair, is it? And how likely is an IR35 assessment?

How long is a piece of string. How much are you earning? How much tax do you pay?

If you are on £100k a year and find ways to get every last penny of tax saved then higher than someone who is on £30k and pays a moderate amount of tax (but still not as much as a permie).

[Billy Pilgrim]

Join the PCG (ir35 insurance) - get the contract reviewed by Bauer and Cottrell - stash a bit of spare cash away incase of investigation / or whack a shedload into a pension directly from your company account without it passing through your grubby mitts.

And vote Conservative and hope they give contractors a level playing field...

Not sure I really meant that last bit mind

[Back In Business]

After their announcement yesterday I think it's quite clear the Conservatives will be continuing Labours legacy if they come into power.

[Diestl]

After their announcement yesterday I think it's quite clear the Conservatives will be continuing Labours legacy if they come into power.

What announcement?

[tim123]

It is obvious that I am not like a regular employee as I'm there for a specific project without a rolling contract.

This fact makes no difference at all to the IR35 status. Companies frequently employ people to perform a single task and leave. It is the conditions within the contract that matter, not how it will end.

tim

[malvolio]

ChrisW

How do you mean "Borderline"? If you have any of the three key clauses covered - RoS, MOO and D&C - and are engaged to do a discrete piece of work with a clearly defined end point, it shouldn't be too hard to put yourself outside IR35 - unless you've done something dumb like work through S3 or CR and the like...

Like someone said earlier, join the PCG and get the contract assessed. Chances of an investigation are low, but they do exist. If you get into one, it will cost you around £10k if you win, so the insurance alone is worth having